Tasmanian Audit Office
Audit Committee

The objective of the Audit Committee is to provide independent assurance to the Auditor-General and to the Office on our risk, control and compliance framework, external accountabilities and our efficiency and effectiveness. In so doing, it is the responsibility of the Committee to maintain free and open communication between the Committee, independent auditors (internal and external) and management of the Office.

In discharging its role, the Committee is empowered to investigate any matter brought to its attention with full access to all books, records, facilities and personnel of the Office and the power to retain outside counsel or other experts as approved by the Auditor-General for this purpose.

The Committee comprises two independent members, Tracy Mathews and Norm Mcilfatrick, and one internal appointment being Rob Luciani, Manager, Financial Audit. Tracy Mathews is Chair of the committee.

Audit Committee

Duties and Responsibilities

The main duties and responsibilities of the Committee are:

1. Advisory function:

This component of the Committee’s work is aimed at providing the Auditor-General with advice from time to time on matters that may be raised by him/her or on matters initiated by the Committee collectively or individually.

 

2. Financial affairs:

Review the quarterly financial statements, annual financial statements and annual report considering whether they are complete, consistent with information known to Committee members, and reflect appropriate accounting principles.

Recommend the annual statutory accounts and annual report to the Auditor-General.

Oversee reliability and integrity of financial and related information systems.

 

3. Risk management:

Review the adequacy of the risk management processes adopted by management for assessing and managing key business and financial risks.

 

4. Compliance:

Review the effectiveness of the system for monitoring compliance with relevant laws and regulations and the organisational programs in place to provide reasonable assurance of compliance.

Review reports issued to, and findings resulting from, any compliance examinations by regulatory agencies, and any auditor observations.

Receive regular updates from management regarding compliance matters.

Review financial delegations and suggest changes to the Auditor-General for consideration.

 

5. Internal Control:

Monitor and review the effectiveness of the systems of internal control, including information systems.

Review Reports from investigations conducted by external parties into Internal Controls and TAO Performance. Monitor implementation of recommendations.

 

6. Budget and Forecasts:

Review the annual budget and forecasts including detailed assumptions for noting and consideration of solvency, sustainability and efficiency.

 

7. Independent Assurance:

Ensure there is an appropriate balance of assurance activity between internal and external audit functions.

 

8. Internal Audit:

Monitor activities and effectiveness of internal audit, including:

  • oversee the process, and review the procedures, for the selection, appointment and removal of the internal auditor
  • approve the engagement terms and conditions of the internal auditor including remuneration
  • approve the annual internal audit objectives and risk-based work plan
  • review the internal audit reports and actions taken by management
  • review internal audit’s periodic reports on the generally observed compliance with internal control and financial practices, provided in addition to reports on specifically agreed audits
  • assess the performance and independence of the internal auditor and
  • meeting with the internal auditor without management present as and when considered necessary.

 

9. External Audit:

Monitor the activities and performance of the external auditor, including:

  • review the annual external audit plan
  • review with the external auditor the outcomes of the annual audits, ensuring that any reported deficiencies or weaknesses in controls have been identified and that appropriate and timely corrective action is taken by management
  • assess the performance and independence of the external auditor
  • meeting with the external auditor without management present at least once per annum.

 

 TAO SEPT 2013 246170144